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Cost-Benefit Analysis Using Economic Surpluses: A Case Study of a Televised Event

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  • Aliza Fleischer
  • Daniel Felsenstein

Abstract

Economic impact studies based on short-run spending injections and multipliers lack conceptual ties to measures of economic surplus, fail to capture intangible benefits and generally fail to measure costs. In this case study of the Eurovision Song Contest (ESC) held in Israel in 1999, national benefits from the government-financed televising of the ESC are measured as producer surplus (approximated by private sector incremental profits), consumer surplus (measured as the incremental willingness to pay for an event staged at home) and government surplus (linked to national implicit benefits in the form of promotional advertising cost savings). The opportunity costs of diverting resources to this particular televised event are expressly included as an offset to these gross surplus benefits. Despite the conservative approach, the results show moderate social justification for public support of this high profile televised spectacle and suggest that a cost-benefit approach to cultural events can have wider applications. Copyright Kluwer Academic Publishers 2002

Suggested Citation

  • Aliza Fleischer & Daniel Felsenstein, 2002. "Cost-Benefit Analysis Using Economic Surpluses: A Case Study of a Televised Event," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 26(2), pages 139-156, May.
    • Handle: RePEc:kap:jculte:v:26:y:2002:i:2:p:139-156
    DOI: 10.1023/A:1014447018099
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    References listed on IDEAS

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    Cited by:

    1. Bruce A Seaman, 2011. "Economic Impact of the Arts," Chapters, in: Ruth Towse (ed.), A Handbook of Cultural Economics, Second Edition, chapter 28, Edward Elgar Publishing.
    2. Bernd Süssmuth & Malte Heyne & Wolfgang Maennig, 2010. "Induced Civic Pride and Integration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(2), pages 202-220, April.
    3. Nissim Ben‐David & Tchai Tavor, 2011. "Measurement of the social loss of wrong public budget allocation," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 38(3), pages 209-217, February.
    4. Oliver Budzinski & Julia Pannicke, 2017. "Culturally biased voting in the Eurovision Song Contest: Do national contests differ?," Journal of Cultural Economics, Springer;The Association for Cultural Economics International, vol. 41(4), pages 343-378, November.
    5. Budzinski, Oliver & Gänßle, Sophia & Weimar, Daniel, 2023. "Disentangling individual biases in jury voting: An empirical analysis of voting behavior in the Eurovision Song Contest," Ilmenau Economics Discussion Papers 171, Ilmenau University of Technology, Institute of Economics.

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